Analysis of Management and Leadership Roles at Rent-A-Car Enterprise

Desklib provides past papers and solved assignments for students. This report analyzes management and leadership in a Rent-A-Car business.

[MANAGEMENT & OPERATIONS]

INTRODUCTION
Management & Operations is the key strength of any organization. The report discusses the
role of manager and leader in the context of Rent-A-Car Enterprise. It provides the key aspect
of operational function and explains the various approaches to management and operation.
The purpose of the report is to highlight the operational efficiencies in the organization so as to
meet the business objectives (Heizer, 2016).
The report also provides a recommendation to the enterprise in the areas of improvements as
well as evaluates the external business factors for identifying the role of manager & leader in
the key functions of the organization.

LO1
This section discusses the role of manager and leader in the context of Rent-A-Car Enterprise
and also focuses on the range of management styles so as to lead the business. The people in
the organization need to be managed and directed so as to apply their skills for the smooth
running of the business. Thus, this part discusses the importance of manager and leader along
with following Taylor’s values and principles so as to achieve business objectives (Heizer, 2016).
P1 DEFINE AND COMPARE THE CHARACTERISTICS AND DIFFERENT ROLES OF
LEADERS AND MANAGER
Manager
A manager is an individual who owns the responsibility to manage the overall work of
organization for the attainment of desired goals and objectives. The pre-planned goals are
achieved through optimum and efficient utilization of organizational resources. He is also
requiring framing the overall strategic plans and policies for the purpose of directing, planning,
coordinating and controlling the organizational activities (Lehner, 2015).
Leader
A leader is a person who leads the work appropriately and thereby integrates the efforts of all
in order to accomplish the organizational objectives within the given time frame. He is known
to be the centric person in order to motivate the people at Rent-A-Car enterprise. He is also
required to follow the strategies of management and responsibility to monitor the workforce of
the organization in the right direction (Lehner, 2015).
The difference in the characteristics and role of manager and leader
The function of manager and leader are linked to each other but there exist certain differences
besides their roles and responsibility at the workplace. A manager is responsible to manage the
administrative unit of the organization while a leader is required to frame innovative strategies
in order to lead the workforce. Some of the key differences as follows:

Particulars Managers Leaders
Definition A manager of Rent-A-Car
Enterprise is required to
plan and organize the
resources for the
achievement of business
objectives (Welford, 2016).
A leader of the enterprise is
required to inspire and
motivate the people for the
accomplishment of the plan in
an effective manner.
Roles A manager at the enterprise
performs the following
function such as resource
allocation and planning od
strategies in order to achieve
sustainability.
The role of the leader
includes performance
management of individual,
motivation and framing
internal strategy in order to
deliver the work.
Focus on A manager focuses on system
and structure of the Rent-A-
Car Enterprise (Welford,
2016).
A leader is required to
maximize the throughput
through the effective
management of people.
Characteristics The potential qualities of the
manager include various
interpersonal skills so as to
provide effective directions to
the group.
A leader at the enterprise
plays an important role in
implementing the policy for
the purpose of achieving a
long-term vision of the
company.
Authority and Power A manager communicates the
policies to the leader as well
Leaders influence the
individuals at the workplace

as delegates the authority so
as to complete the work in
the required time frame.
to align their personal goals
with the organizational
objectives.
Responsibility A manager sets the overall
objectives for the company.
Leaders provide the effective
direction so as to persuade
the objectives as developed
by the manager.
APPLICATION OF MANAGEMENT BY OBJECTIVES TO ACHIEVE SUSTAINABLE GROWTH
According to Drucker, MBO is a model that helps to set clear objectives for management and
employees in an effective manner. It plays a vital role with respect to the distribution of work
and responsibility in a clear and transparent manner. It also ensures the effective participation
of the employees through active support of top management. Thus, it can be said that
management by objectives proves to be useful for the accomplishment of organizational
objectives in an effective manner (Winston, 2018).

LO2
P2 EXAMINE HOW THE ROLE OF LEADER AND FUNCTION OF MANAGER CAN BE
APPLIED IN SITUATIONAL CONTEXT
The various functions related to the managerial performance given by Henry Fayol are as
follows:
 Planning
Planning is the basis for all other functions of management. Effective planning is
required for setting the organizational vision, mission and strategies that act as a basis
of controlling all the activities of the organization (Starr, 2016).
 Organizing
This function of management is concerned with an organizational structure for the
effective functioning of day to day activities. Thus, a manager is required to manage all
the resources as per the priority of the organization in order to achieve the desired goals
or objectives (Haksever and Render, 2018).
 Controlling
The functions of controlling ensure that the plans are achieved in an effective manner.
This function also ensures that corrective measures have been taken as per the
deviations. Thus, it is required by the manager that control should be done on a
continuous basis for effective measuring of employee’s performance (Wheelen et al.,
2017).
 Directing
This function of management helps the manager to direct the employees in the right
direction so as to achieve their agreed goals and objectives (Starr, 2016).

 Coordinating
The efforts of individual working at Rent-A-Car Enterprise must be coordinated by
establishing a friendly relation among one another.
MANAGERIAL PERFORMANCE IN CONTEXT OF RENT-A CAR ENTERPRISE
The manager at the enterprise is responsible to set the control budget as well as coordinate the
operational activities in order to satisfy the customer’s needs. It helps to perform the task in an
effective manner by a proper division of work among various departments. The work is divided
according to the specialization of each individual.
Thereby, the company has also implemented Fayol principle in order to achieve competitive
advantage by motivating the people working at the organization. Furthermore, the potential
talent of the employees is enriched with the help of proper education and training.


The various leadership functions are as follows:
 Setting goals
This is the basic function of every leader that he should encourage his team members in
order to achieve the agreed goals or objectives (Welford, 2016).
 Organizing
The leadership function also involves organization of various tasks in a sequential
manner so as to allocate the right task to the right member.
 Initiating action
A leader is the one who always takes initiative for implementation of policies and
procedures set by the manager. He also took an active involvement in the decision-
making process of the enterprise.
 Direction and motivation
A leader inspires and motivates his followers to perform the assigned task in the best
possible manner. He continuously motivates his team to work in a coordinated manner
and also take steps to reconcile the difference of interest among the team members.
 Establish a link between management and workers
The most important function of a leader is to establish a platform between the top
management and workers for the accomplishment of the task in an effective manner
(Welford, 2016).

P3 APPLY DIFFERENT THEORIES, MODELS AND APPROACHES WITH RESPECT
TO SITUATIONAL LEADERSHIP, SYSTEM LEADERSHIP AND CONTINGENCY
MODEL
The business operations of Rent-A-Car Enterprise can be run in a smooth manner by adopting
different management styles that further helps to discover a problem in an effective manner.
There are various types of leadership theories and approaches that can be applied in varied
situations for utilizing the potential skill and abilities in an efficient manner.
 Situational Leadership
This model is developed by Paul Hersey and Ken Blanchard that enable the manager to
adopt different styles according to different situations. It curtails down the practices of
using a particular model related to leadership in every situation (Ferrell and Fraedrich,
2015).
This model mainly consists of two behaviours i.e. directive and supportive that can be
applied on the basis of high rate and low rate. They together form the four quadrants of
the model.
Figure: Situational Leadership

[Source: Ferrell and Fraedrich, 2015]
This theory is flexible in nature and enables the manager and leader at the Rent-A-Car
Enterprise to adopt different styles of management and leadership with respect to
various circumstances. This style is best suited as per the current situation of the
enterprise that can further emphasize on teamwork value and open communication.
 System Leadership
This approach of leadership helps the manager to create potential working conditions
for improving the productivity of the organization. It focuses on sound principles of
human behaviour for the development of organizational strategy and design. This style
can be adopted by a manager or leader at Rent-A-Car enterprise for improving the
existing system and attaining sustainable growth of the organization.
It further helps the manager and leaders to communicate the needs of the organization
to the employees so that they can work with their full potential and zeal to achieve the
organizational perspective.
This is a broader approach that helps the leader to modify the system and structure of
the organizational process. This model can be applied with respect to Rent-A-Car
enterprise in order to derive benefits in terms of achieving long term vision and
sustainable growth of the company. Thus, it is an innovative and creative approach that
focuses on the welfare of the organization and avoiding the misuse of resources in the
sustainable growth of the company.
 Contingency Model
This approach of leadership states that an organization can follow any leadership style
that is best suited to take the optimal decisions. The appropriate course of action
depends on internal and external factors in the environment in which business operates.

It encourages the use of own style of leadership that is best suited in a particular
situation (Devalkar et al., 2018).
This leadership style consists of two types of a leader; they are task oriented and
relationship oriented based upon nature.
Task- Oriented
This type of leader is only concerned with the accomplishment of the task. He is not
considered about the employee’s perspective and ultimately results in increased
productivity.
Relationship- Oriented
This type of leader focuses on building an appropriate relationship and mutual
understanding between the employer and employee. He gets the work done by
developing a sense of trust and confidence among the employees. This can ultimately
increase the retention level of employees through greater and enhanced satisfaction
(Devalkar et al., 2018).
Thus, this approach can be beneficial to Rent-A-Car enterprise in terms of enhancing
productivity or improving the work culture of the organization by implementing the
above two approach.